Please remain standing. I will invite our honoured chaplain, Major Karen Hoeft to say the opening prayer.

Thank you, Pastor Hoeft. I just want to remind Members that the national anthem that was sung today, our national anthem was sung in four of the several official languages of the Northwest Territories. It is a CD that we had commissioned for this year. We are very proud and pleased to open many occasions with it.

Colleagues, I understand that Her Honour, the Commissioner of the Northwest Territories, is prepared to enter the Chamber to give the Opening Address. Mr. Clerk, would you please attend to and escort the Commissioner of the Northwest Territories into the Chamber.

Please be seated. The Chair will now recognize the honourable Member for Nunakput, Mr. Steen.

Thank you, Mr. Speaker. Mr. Speaker, I have a point of order.

Thank you. The honourable Member is rising on a point of order. Mr. Steen, what is your point of order?

Mr. Speaker, on the point of order, under Rule 23(h) and 23(j) yesterday in the House, Mr. Dent suggested during a Member's statement that I had misinformed the House and the public with responses to questions during the June 2002 sitting.

Mr. Speaker, I have not misinformed the House. In responses to questions asked by Mr. Dent on June 14th, 2002, I stated, "What is it costing annually? I do not know, Mr. Speaker, but I have been told it is the nature of $33 million."

Mr. Speaker, on June 17th, 2002, I stated during further questioning that the figure supplied was not recent and that I believed it had been prepared during the 13th Legislative Assembly. My responses to Mr. Dent's questions were clearly qualified and as such could not possibly be construed as misleading the House.

I request that Mr. Dent's remarks from yesterday be withdrawn. Thank you, Mr. Speaker.

Thank you, Mr. Steen. The Chair has heard your concern and takes it under advisement. Mr. Steen, the issue that you raised, while it may well of occurred, occurred in the last session and the last session is now in the history books. We have opened a new session. The earliest opportunity that you could have raised that was yesterday and you should have raised it yesterday. Therefore I will not allow the point of order in this new session. Therefore there is no point of order. Item 3, Ministers' statements. The honourable Minister responsible for Finance, Mr. Handley.

Mr. Speaker, I would like to take this opportunity to update Members and Northwest Territories residents on this government's fiscal position and outlook.

When I presented the budget in February, we were looking at a fairly positive short-term fiscal situation. Primarily because of a very large one-time corporate tax filing we had forecast a 2001-2002 year-end surplus of about $160 million and a deficit of about $12 million for the 2002-2003 fiscal year. Based on final public accounts for last year we realized a surplus of $120 million, not $160 million, for the last fiscal year. However, the largest change is in our current revenue and expenditure forecasts for 2002-2003 which suggest we are heading for a $104 million deficit for 2002-2003.

The decline in our short-term outlook can be attributed to several factors, primarily on the revenue side. Lower than expected population growth, as measured by Statistics Canada, and higher than expected provincial-local government tax effort have reduced our expected grant from Canada both for the 2002-2003 fiscal year and for prior years.

The resulting large prior year adjustments will affect our grant payments for this year. Although we are confident that our population figures will be corrected by the time the census adjustments are announced next year we must reflect the current official numbers in our revenue estimates. In addition, lower corporate income taxes and slightly higher expenditure projections have added to the forecast deficit.

Looking forward beyond the 2002-2003 fiscal year we continue to see revenue forecasts that are below our spending needs, although there has been a small improvement since the February budget forecast. Overall, however, our fiscal position for the four years from 2001-2002 to 2004-2005 has worsened by about $75 million from the budget projection.

In the February budget I explained that, unless we receive further one-time tax revenues, or increased federal investment, we would likely reach our government's borrowing limit of $300 million by late 2004-2005. Based on our current forecast of cash requirements, we estimate that this date will remain roughly the same. To avoid this we have only a few basic choices. Increase revenues and/or cut spending.

The original fiscal strategy laid out in the budget was based on three key assumptions:

• • Economic development will continue;
• • Northern governments will achieve devolution; and
• • Northerners will benefit from resource development.

Based on these assumptions, we have maintained a strategy of making key investments to ensure Northerners benefit from development.

Mr. Speaker, although there has been some recent slowing in economic activity -- oil and gas exploration may be down from last winter's levels and the completion of the Snap Lake diamond mine is now estimated to be delayed by a year, the fundamentals of our economy are unchanged. The prospects for our resources remain extremely bright. We are still seeing high rates of employment, the highest in Canada, in fact. The first eight months of 2002 saw retail trade figures 14.5 percent higher than the same period last year, and wholesale trade 48 percent higher. The Diavik diamond mine will begin shipping diamonds in February 2003. The Mackenzie Valley Producers Group is ready to file their preliminary information package.

What is missing from this equation is the federal government. The federal response to the opportunities of the Northwest Territories has been disappointing. Despite being told that our proposal for the Strategic Infrastructure Fund, Corridors for Canada, was the best submitted, we have been told by federal Infrastructure Minister, the Honourable Allan Rock, that the Northwest Territories allocation from the Strategic Infrastructure Fund will only be $20 million, the same as the other two territories.

We are frustrated that devolution negotiations, which seemed to be finally getting off the ground, are now being held up by the fact that the federal negotiator does not have a mandate to discuss the fiscal issues.

We are concerned that benefits to Northerners may be at risk as a result of federal inattention to the pipeline file. however, we are encouraged by the appointment last week of a federal representative, Mr. Roland Priddle, whose job it will be to help advance this project.

I met with the federal Finance Minister, the Honourable John Manley, several weeks ago, to raise a number of these issues. It was a productive meeting, and I am seeking a further meeting to follow up on our discussions. I am hopeful that Mr. Manley will be able to address some of our fiscal concerns, especially in light of the positive fiscal outlook Mr. Manley outlined for Canadians yesterday. I am also seeking a meeting with Mr. Rock to explain why his offer will not meet the Northwest Territories' objectives for infrastructure investment.

Although we must continue to aggressively pursue federal investment, we are also looking for ways we can reduce our spending and increase our revenues. We must not, however, jeopardize our long-term social and economic objectives. I will of course expand on this in much more detail in the February 2003 budget.

The potential wealth that will be created from the development of the Northwest Territories' vast resources and the fiscal return that that development will generate are huge. I still believe that our long-term strategy of making investments to prepare for and manage that development so that Northerners reap the maximum benefits is the right one. Thank you, Mr. Speaker.

-- Applause

Thank you, Mr. Minister. Item 3, Ministers' statements. The honourable Premier, Mr. Kakfwi.

Mr. Speaker, on Monday I met with fellow federal, provincial and territorial Energy and Environment Ministers in Halifax to discuss Canada's approach to addressing climate change. Federal Environment Minister David Anderson and Natural Resources Minister Herb Dhaliwal outlined the key elements of the federal plan for meeting Canada's Kyoto greenhouse gas emission target. This meeting was the first opportunity for provincial and territorial Ministers to get clarification on these key elements and to discuss the need for further consultations with Canadians.

I would like say a few words on what this plan to reduce greenhouse gas emissions means to the residents of the Northwest Territories. First, Canada assured us that there will be an increasing need for natural gas and a Mackenzie Valley pipeline in a Kyoto world. Second, Canada recognizes that there will be costs for programs to reduce emissions and is prepared to make funding available in a phased approach over the next 10 years. Third, in the words of the federal government, the results of their economic analysis indicate that the overall economic impact is modest.

However, the cost to this government and northern business of taking actions to meet Canada's emission reduction obligations remains largely unknown. In the North we are already paying for the cost of a changing climate. For example, winter resupply seasons have shortened and the melting permafrost is affecting building and road foundations. We have been assessing the federal government's economic forecasts of impacts. With the release of these key elements we can complete our assessment.

Mr. Speaker, I am pleased to report that all Ministers agree climate change is a challenge that must be addressed. Ministers further agreed to, once again, work together to develop a truly national implementation plan. Over the next three weeks officials will revise the federal framework to address deficiencies and develop a national plan that fits within the principles agreed to by the provinces and territories. We remain confident that Canada can meet its emission reduction target within the time frame set out by Kyoto.

In Halifax, I stressed that the plan must protect our economic interests while striving to improve them. It must reassure businesses by reducing uncertainty. Minister Dhaliwal confirmed that the federal government has the same objectives.

Energy and Environment Ministers agreed to meet again in late November to review the national implementation plan. Meanwhile, in New Delhi, Canada will lead discussions on the next phase of the Kyoto Protocol that will bring developing countries under the agreement to reduce their emissions.

Mr. Speaker, the people of the Northwest Territories agree that we must address climate change. As a territory we are developing an energy strategy and greenhouse gas strategy to control our emissions of greenhouse gases. Northerners cannot deal with climate change alone. We need all Canadians to be engaged and our preference is that a national plan is developed within the context of the global Kyoto Protocol. Mahsi.

Thank you, Mr. Minister. Item 3, Ministers' statements. The Honourable Premier, Mr. Kakfwi.

Mr. Speaker, later today I will be tabling a list naming those residents of the Northwest Territories who were nominated by the Commissioner of the Northwest Territories and by the Government of the Northwest Territories and who have been selected to receive a Queen's Golden Jubilee commemorative medal.

I would like to congratulate these medal recipients who will learn today by this announcement that they have been chosen to receive this prestigious award. I would also like to congratulate all other residents of the Northwest Territories who have been nominated by various government and non-government agencies to receive this award.

The Golden Jubilee Medal of Queen Elizabeth the Second commemorates the 50th anniversary of Her Majesty's reign as Queen of Canada. It is an award of distinction, which is part of the Canadian Honours system. It is being bestowed on 46,000 Canadians, from all walks of life, who have distinguished themselves through their achievements or who have made an outstanding contribution to their fellow citizens, their communities or Canada.

The creation of the Queen's Jubilee Medal was announced earlier this year by the Governor General of Canada. Partners from various organizations across Canada were invited to propose the names of candidates for the medal. These partner organizations include: federal, provincial and territorial governments; national professional, educational and cultural organization; the military and the RCMP; veterans groups; sports associations and charitable organizations.

Mr. Speaker, 149 residents of the Northwest Territories were nominated by the Commissioner of the Northwest Territories and the Government of the Northwest Territories. Regrettably their names are too numerous to mention here individually. However, their collective accomplishments have done much to enrich the lives of all people of the Northwest Territories. They have distinguished themselves through their accomplishments in a variety of areas including literacy, the arts, athletics, community leadership, public service and volunteerism, to name a few.

Each recipient will receive a commemorative medal struck by the Canadian Mint and a certificate bearing the recipient's name. In the interest of ensuring that all nominees receive their medals before the end of the Jubilee Year, I will be personally advising recipients of their awards in writing and indicating who nominated them.

Mr. Speaker, all residents of the Northwest Territories who have been nominated to receive a Queen's jubilee medal were chosen because their contributions to their communities and to the Northwest Territories have made an impression upon others. They have provided a valuable contribution to NWT society, and it is my great pleasure to honour them for their achievements. Thank you.

-- Applause

Thank you, Mr. Premier. Item 3, Ministers' statements. The honourable Premier, Mr. Kakfwi.

Mr. Speaker, I would like to provide an update on the status of devolution negotiations which commenced on September 20, 2002, in Inuvik.

Mr. Speaker, the Government of the Northwest Territories, the Aboriginal Summit and the federal government are parties to the formal negotiations. An aggressive agenda was set with the objective of having a framework agreement within 12 months. The framework agreement is expected to identify and address issue areas, with the parameters laid out in relation to the resolution off any outstanding issues.

The parties have agreed to meet monthly as a main table and to establish side tables and working groups on specific subject matters such as contaminated sites and environmental liabilities and human resources.

Mr. Speaker, we believe that NWT governments have similar interests in relation to devolution. Together we recognize that control of our natural resources belongs with NWT residents, as do the benefits from the development of our resources. We have begun and expect to continue working closely with the Aboriginal Summit to achieve these interests and reach a deal that benefits the Territory as a whole.

The most difficult issue will be the degree to which NWT governments and their constituents will benefit from assuming the new responsibilities for the management of natural resources and from sharing resource revenues. This degree of benefit is referred to as the net fiscal benefit and is one of the critical areas of negotiations for NWT governments. There is little point in receiving the resource revenues if Canada then takes them back through other financing arrangements with NWT governments.

I spoke about the negotiation of the net fiscal benefit in the Legislative Assembly last week during question period. I expressed concern about the negotiation process with respect to the net fiscal benefit. As one party to the negotiations, we view the net fiscal benefit as an integral part of the devolution negotiations process that must be reflected in the devolution transfer agreement.

We understand that the federal government wishes to separate the net fiscal benefit negotiations from the devolution negotiations, which includes the collection of resource revenues and how they will be shared within the NWT as separate processes. This is largely because the Department of Indian and Northern Affairs is responsible for the devolution aspect of the negotiations while the federal Department of Finance has ultimate responsibility for the net fiscal benefit that would accrue to NWT governments.

I am encouraged from a recent meeting that Minister Handley and I had with Finance Minister Manley that he understands the importance of a net fiscal benefit and also that federal negotiators and departments need to work in close coordination and cooperation.

However, we cannot stress enough that these two parts of the puzzle have clear and critical linkages for NWT governments. Managing our natural resources and collecting and sharing resource revenues by NWT governments means little without ensuring that we keep a fair net fiscal benefit in the NWT -- a benefit that takes the needs of our governments into consideration -- a benefit that allows us to encourage more development while also managing the increased costs on programs and services, which resource development brings.

Mr. Speaker, all parties agreed to a devolution process that includes devolution, resource revenue sharing and a fair net fiscal benefit through the Memorandum of Intent for Devolution and Resource Revenue Sharing agreed to in Inuvik in May of 2001. I am fully confident that Canada will honour all of these commitments once it sorts out its administrative approach to these negotiations.

Mr. Speaker, I look forward to providing regular updates to the Members of this Legislative Assembly on the progress of negotiations over the next year. Mahsi.

Thank you, Mr. Premier. Item 3, Ministers' statements. The honourable Minister responsible for Health and Social Services, Mr. Miltenberger.

Thank you, Mr. Speaker. Mr. Speaker, our health is one of the most important issues to all Northerners, and it is often an emotional one, as it directly affects our quality of life and that of our family, children, elders and friends. The people of the NWT need to have the confidence and comfort knowing that the necessary health and social service supports will continue to be available, when needed.

Today, I would like to take the opportunity to provide an update on actions the department and authorities are taking to address these issues.

In February of this year I brought together the leadership of the health and social services system to begin work on 45 actions to improve the overall management and delivery of services to NWT people. These actions, summarized in the Health and Social Services System Action Plan reflect recommendations made to the department, past Ministers and this government in public consultations and system-wide reviews over the past few years. The department and authorities join me in saying this is an ambitious plan with ambitious timelines, but will result in immediate and long-lasting improvements to our system.

However, the litmus test for me, Mr. Speaker, is that this action plan continues to be as relevant today as it was eight months ago - which has been reinforced as I continue to meet directly with residents and health care staff across the North to hear their concerns.

When I became Minister, almost a year ago, I committed to visit every community in the NWT to meet with the leaders, community members and front-line staff, to listen to their health and social services concerns. To date I have visited all but three communities, which I intend to visit in the next few weeks.

In every community I have seen and heard that we have dedicated staff providing high quality health and social services to NWT residents. The frontline workers doctors, nurses, social workers, allied health professionals and support staff -- are the backbone of the NWT health and social services system. Their continued dedication and service, often going the extra mile, is greatly appreciated.

However, I have also heard that there is more that we should be doing to improve the delivery of health and social services, and to recruit, retain and support staff. I recognize there are immediate problems that must be addressed.

Mr. Speaker, one of the commitments I made is to provide regular reporting on our progress. The status report to be tabled this afternoon does just that - it reports on the activities and accomplishments during the first seven months of implementation of the action plan. The department and authorities, in consultation with professional organizations and stakeholders, have been working non-stop on the implementation of the plan. By March 2003 we will have completed just over half of the 45 action items.

In addition to the specific tasks in the action plan the department and authorities have continued to work on many initiatives that were previously in progress, as well as giving attention to urgent issues, in response to concerns from residents and Members of this House.

Significant progress has and will continue to be made in the months to come. Several key actions and initiatives will be finalized for review and discussion in the weeks ahead. Highlights include:

• • an action plan outlining activities to strengthen programs and services available to seniors was approved and is in the process of being implemented;
• • along with the Department of Education, Culture and Employment we are continuing to work with our partners on the implementation of the Early Childhood Development Action Plan to achieve the vision that the NWT will be a place where children are born healthy and raised in safe and respectful families and communities which support them in developing to their fullest potential;
• • a Retention and Recruitment Plan for Allied Health Care Professionals, Nurses and Social Workers, to address the immediate and longer term staffing shortages, will be finalized in early November 2002, to be shared with the public soon after;
• • a framework for an Integrated Services Delivery Model has been developed with initial action plans to be finalized in early November 2002 for;

- Addictions and Mental Health Services

- Continuing Care Services

• • a Discussion Paper for the review of Supplementary Health Benefits is being finalized for public consultation and review in November 2002.

Some of the changes to the system, such as the development of an integrated service delivery model, requires that we examine fundamental questions about how health and social services are delivered in the NWT, the types of front-line professionals in the system, how do they provide services and in what setting. The work requires that we challenge current norms of service delivery in order to eliminate the stovepipes in service delivery that exist and it may, in some instances, redefine roles and responsibilities within the team of service providers. These changes will require careful consideration and consultation, and we will all have to work together to make difficult choices and decisions.

Mr. Speaker, we have not completed all tasks on time. Some adjustments to timelines have had to be made because of financial constraints. And some adjustments have been required to ensure appropriate consultation and involvement with stakeholders. The status report presents revised time lines that takes into consideration these factors. I look forward to questions and requests for additional information from Members on this status report. It s a priority that all NVVT residents and this House are kept informed of our progress.

Improving the NWT health and social services system is a campaign on many fronts. It requires that we stay the course to make the necessary improvements to ensure the long-term sustainability of the health and social services system, while recognizing that issues arise that require our immediate attention as well.

Mr. Speaker. the people of the Northwest Territories are our greatest resource. Continuing development of the North, whether it is social, economic or political development is dependent upon the strength of our northern community. The programs and services delivered by the health and social services authorities, and the many non-government organizations, are an essential part of our social safety net, enabling Northerners to be healthy and self-reliant, to fully participate in the opportunities that the North provides. Thank you Mr. Speaker.

-- Applause

Thank you, Mr. Miltenberger. Item 3, Ministers' statements. The honourable Premier, Mr. Kakfwi.

Mr. Speaker, I wish to advise Members that the Honourable Jim Antoine will be absent from the House today to attend to a personal matter. Thank you, Mr. Speaker.

Thank you, Mr. Premier. Item 3, Ministers' statements. Item 4, Members' statements. The honourable Member for Hay River North, Mr. Delorey.

Thank you, Mr. Speaker. Mr. Speaker, I recently met with some of my constituents and they brought to my attention a very disturbing issue; that being the issue of sexual exploitation in Canada.

Mr. Speaker, for several years, a number of concerned Canadians -- this group is called CASE, Canadians Addressing Sexual Exploitation -- has been requesting a change in the age of consent law. In 1987, Mr. Speaker, the Conservative government reduced the age of consent for sexual activity from 18 to 14, and the Liberal government has apparently made no attempt to change this law, or to restore it.

Another area of grave concern, Mr. Speaker, is the issue of child pornography and the exploitation of children. Mr. Speaker, upon doing research of this extremely important topic, I learned that there are 23,000 pedophile websites available on the Internet. I was shocked, Mr. Speaker, and it is disgusting.

Mr. Speaker, it is legal for an adult of any age to engage in sexual activity with a 14-year-old child. As a father of four children, this upsets me deeply. Mr. Speaker, the consumption of pornography can lead to destroyed marriages and the breakdown of the family unit, sexual violence, rape, teenage pregnancies and sexually transmitted diseases, to name a few. The effects on society are many.

This is an issue, Mr. Speaker, of public health and safety. As a society, we can no longer afford to ignore the issue and hope that it will just go away.

This year's WRAP campaign, Mr. Speaker, which stands for White Ribbon Against Pornography, was held from October 20th to the 27th. Mr. Speaker, I was extremely proud at church this past Sunday in Hay River when a large white ribbon was signed by 75 members of our congregation in support of this year's white ribbon campaign.

Mr. Speaker, the Catholic Women's League of Hay River will be forwarding this white ribbon to the Honourable Ethel Blondin-Andrew in order that she may present it to her colleagues in Ottawa. To this end, Mr. Speaker, I would like my colleagues to join me in speaking out against child pornography and sexual exploitation. I encourage all Members to contact...

Mr. Delorey, the time for your Member's statement has ended. Mr. Delorey, you have the floor.